TRENDS IN CONSTRUCTION TECHNOLOGY –THE POTENTIAL IMPACT ON PROJECT MANAGEMENT AND CONSTRUCTION CLAIMSA RESEARCH PERSPECTIVE ISSUED BY THE NAVIGANT CONSTRUCTION FORUM™

DECEMBER 2016

TRENDS IN CONSTRUCTION TECHNOLOGY –THE POTENTIAL IMPACT ON PROJECT MANAGEMENT AND CONSTRUCTION CLAIMSA RESEARCH PERSPECTIVE ISSUED BY THE NAVIGANT CONSTRUCTION FORUM™

NOTICE

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they are general in nature, do not relate to any specific project or matter, and do not

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Navigant makes no representations or warranties, expressed or implied, and is not

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PURPOSE OF RESEARCH PERSPECTIVE

The construction industry has long been singled out as an industry with declining

productivity and a strong resistance to change.

“Innovation and cutting edge are not words frequently associated with the U.S.

construction industry, at least not in comparison to industries like robotics or aerospace,

but even more unfortunate is that the industry’s poor image may be deserved. Data

from federal agencies shows U.S. construction industry productivity has a long history

of decline that continues today.”1

1. “Construction Productivity in Decline,” Professional Engineer, National Society of Professional Engineers, June 2014.

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“Like all industries, the construction industry is seeing rapid

advancements in technology, but unlike most industries, the

construction industry has relied on age-old techniques for a very

long time. Nobody likes change, but I think we all agree that our

industry in particular is pretty resistant. Simply put, we’re on the

verge of something big. It’s the kind of shake-up that has the

potential to revolutionize the way that people perform their jobs

on a daily basis.”2

“Although the construction industry is well positioned for

technological disruption, a mindset shift among practitioners

remains the biggest challenge. In its survey, KPMG found that

most construction firms are waiting for competitors to take the

first step toward the adoption of technologies to streamline

their workflows and improve their data collection – including

integrated project management information systems, earned

value management, remote monitoring, smart sensors, and

robotics and automation.”3

The purpose of this quarterly research perspective is to identify

and explore some of the advances in construction technology in

order to identify their potential impact on project management

as well as construction claims management and dispute

avoidance. Technology has transformed the world radically over

the last few decades. Computers, the internet, the internet of

things (“IoT”), solar and wind power generation, and much more

have made substantive changes in our personal and professional

lives as well as in the overall economy. Likewise, there have been

a number of technology changes impacting construction, with

even more on the way.

Navigant’s Global Construction Practice recently identified 21

“early stage startups” that are working on technologies – both

software and hardware – that are oriented at changing the

construction industry insofar as how projects are planned,

designed, and constructed. The Navigant Construction Forum™

was asked to research the topic of how technology is in the

process of changing the construction industry. While performing

this research the Navigant Construction Forum™ also examined

how some of these technology changes have the potential to

avoid or mitigate construction claims.

INTRODUCTION

Starting the research for this report, the author thought back on

the changes observed over the last four decades the author has

been involved in the construction industry. At a minimum they

include the following:

• From paper drawings to Computer Aided Drawings (“CAD”)

to Building Information Modeling (“BIM”)

• From handwritten to typewritten letters sent via the U.S.

Postal Service to faxes to e-mail to text messages, Twitter,

and other instant-messaging applications

• From hand-drafted construction schedules using the Arrow

Diagramming Network (“ADM”) to Primavera P6, version 16.2

• From mainframe computers to “luggables” to laptops to

handheld computers

• From a large number of handwritten project logs to very

sophisticated project management software systems

• From large files of payment applications, addenda, change

orders, Requests for Information (“RFIs”) or Clarifications

(“RFCs”), and Shop Drawings / Submittals to online systems

where all parties on the project can electronically access such

documents in real time.

Other changes to construction industry technology encountered

by the author include:

• The use of Radio Frequency Identification (“RFID”) for tools,

equipment, stored materials, etc.

• The use of Light Detection and Ranging (“LIDAR”) devices to

create 3D models, as-built drawings, etc.

• The use of Unmanned Aerial Vehicles (“UAVs”) or Drones

• The use of Ground Penetrating Radar (“GPR”) for the

purposes of subsurface investigations

• 3D printing

• 4D scheduling

• Object detection technologies such as backup cameras and

pulsed radar object detection

• Fatigue detection technology that monitors pupil size,

blinking and how long eyes stay shut in order to detect

fatigue

• Smart wearables that utilize RFID, sensors and biomonitors

• Grading technology such as GRADE with Assist to make

excavators, bulldozers and motor graders more efficient, cut

grading time, reduce excavation rework, and reduce the cost

of staking and grade checking

2. http://www.isqft.com/start/blog-future-trends-construction-industry/

3. Hallie Busta, “Construction Dive – KPMG report: Construction industry slow to adopt new technology,” Sept. 14, 2016, http://www.constructiondive.com/news/kpmg-report-construction-industry-slow-to-adopt-new-technology/426268/

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These and many other changes to the technology associated

with the construction industry have the potential to

substantially change the way owners, designers, construction

managers, contractors, and subcontractors perform their work.

Once these technological changes are more widely adopted in

the industry, it is believed that construction productivity will

increase, construction costs will decrease, and site safety will

improve substantially.

As noted in earlier research perspectives issued by the Navigant

Construction Forum™, including the Delivering Dispute Free

Projects series and A Crystal Ball – Early Warning Signs of

Construction Claims & Disputes4 the Navigant Construction

Forum™ has determined that there are five requirements

necessary to deliver a successful project as shown below.

In addition to researching how such technological advances

will impact projects and project management, the Navigant

Construction Forum™ has also considered how many of these

technology advances might contribute to the prevention or

mitigation of construction claims and disputes, thus contributing

to the ultimate goal for both owners and contractor – delivering

successful projects.

The Navigant Construction Forum™ took a high-level look at

14 advances in construction related technology in order to

get a robust picture of the trend in construction technology.

These 14 advances are presented in this research perspective in

alphabetical order, not in order of significance or the potential

impact on projects and claims. This research perspective

describes and discusses each technology in a summary fashion

and forecasts the potential impact of each on construction and

project management. Additionally, the Navigant Construction

Forum™ offers observations on how each technology may

impact construction claims and disputes.

TRENDS IN CONSTRUCTION TECHNOLOGY

3D PRINTING

3D printing (also referred to as “additive manufacturing”)

is a construction process that fabricates three dimensional

solid objects from a digital program file. The fabrication of a

3D printed object is accomplished by laying down layers of a

specified material until the object is totally fabricated. Each

layer of the material is a thin horizontal cross section of the

fabricated object. By way of analogy, 3D printing is somewhat

like glue laminated timber, also called “glulam,” in that each thin

layer laid down by a 3D printer bonds to the previous thin layer

to fabricate an entire object. 3D printed objects can take on any

shape. The fabricated objects are produced from a virtual design

of the desired object. Virtual designs can be created by a CAD

file using a 3D modeling application, a digital model, a 3D model

or an Additive Manufacturing File (“AMF”). A 3D model may also

be created by use of 3D scanners that generate a 3D model that

feeds into 3D modeling software to create the needed 3D model.

Potential Impact on Construction, Project Management, and

Claims Mitigation – Assuming that a project design is accurate

and sufficiently complete, the Navigant Construction Forum™

anticipates that 3D printing should allow for pre-fabrication

of various components needed to complete the constructed

project. For example, in the early 2000s, Cornell University

undertook a large student housing project (approximately $170

million). In an effort to save cost and time on this program,

Cornell pursued the idea of “prefabricated” bathrooms for the

new dormitories.5 Although 3D printing did not exist at that time,

commercially at least, such prefabricated components could

reduce construction duration, increase construction quality

and decrease the need for rework, thus saving time and cost

for the contractor.6 It is well recognized in some sectors of the

construction industry that prefabrication and/or modularization

of selected components offsite will aid in onsite productivity.

3D printing can help spread the concept of prefabrication for

the benefit of projects and their stakeholders. However, it is also

recognized that prefabrication and modularization will require

more careful attention to procurement chains and processes

than is now common on most construction sites.

4. See “Delivering Dispute Free Projects: Part I – Planning, Design & Bidding,” Oct. 2013; “Delivering Dispute Free Projects: Part II – Construction & Claims Management,” March 2014; “Delivering Dispute Free Projects: Part III – Alternative Dispute Resolution,” June 2014; “A Crystal Ball – Early Warning Signs of Construction Claims & Disputes,” June 2015, and “Delivering Dispute Free Projects – Does Partnering Help?” March 2016, Navigant Construction Forum™, Boulder, CO.

5. Barbara White Bryson and Canan Yetmen, The Owner’s Dilemma: Driving Success and Innovation in the Design and Construction Industry, Greenway Communications, Atlanta, GA, 2010.

6. Nigel Hughes, Jason M. Dougherty, and James G. Zack, Jr., “The Impact of Rework on Construction & Some Practical Remedies,” Navigant Construction Forum™, Boulder, CO, 2012.

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Another example of how of how 3D printing may also

impact productivity onsite was highlighted by the American

Association of Mechanical Engineers (”ASME”). An industrial-

scale robot working in conjunction with a 3D printer was able

to fabricate and lay bricks approximately four times faster than

a human bricklayer.

“The robot arm rapidly and precisely builds the entire outer shell

of a small house, laying about 225 bricks per hour. To compare,

a human bricklayer lays about the same amount of bricks in half

a work day.”7

As 3D printers become more common in the construction

industry the impact may help decrease productivity loss and

delay claims as prefabrication and increased productivity of

onsite work should result. Additionally, 3D printing should also

help decrease the need for rework on projects that, in turn,

should reduce costs and delays.

4D BIM

4D BIM is a term widely used in the CAD industry. The term

refers to “an intelligent linking of individual CAD components or

assemblies with time or schedule related information.”8 As such,

the term 4D BIM refers to the “fourth dimension” – time. Thus,

4D BIM is 3D BIM plus the schedule. The idea of 4D BIM or 4D

scheduling is somewhat akin to a time machine. The concept is

to allow project participants to visualize all schedule activities

and events in advance of when these activities or events are

underway. Being able to visualize both the design as well at the

construction plan well in advance of actual construction should

help superintendents, foremen, and craft labor see what it is

they are to construct, in what order, and allow them to gain

confidence in the plan. Further, seeing the project being built

visually should allow project participants to foresee and avoid

problems such as having multiple trades working in the same

small space at the same time – something that is difficult to

spot when reviewing a typical critical path method (“CPM”)

schedule. As one of the author’s previous senior managers used

to frequently comment, “Bad news delivered early is useful

information. Bad news delivered late is a disaster.” In the context

of 4D scheduling, if the visualized model shows conflicts or

pinch points in the construction plan and these are discovered

early in the process, the plan can be modified to avoid such

problems before such issues actually impact work in the field.

Potential Impact on Construction, Project Management, and

Claims Mitigation – A recent article in a well known construction

industry publication discussed 4D BIM in the context of 4D

scheduling. Some of the comments in this article highlight the

impact of 4D scheduling on both construction and project

management as follows.

“4D visualization is a dress rehearsal for the foremen, and

catching [conflicts] weeks ahead of time means you can be that

much more efficient when the labor and the foremen are on

the jobsite. It’s the human equivalent of clash detection. … The

process of animating the model from the schedule forces an

attention to detail that is often missing from schedule reviews.

… 4D visualization … supports lean principles and pays huge

dividends in safety, efficiency and quality. … As the team reviews

the 4D model they believe that the work can be done as the

schedule and model show. … We are going to see some major

efficiency gains.”9

The Navigant Construction Forum™ believes that as 4D BIM

and 4D scheduling become more prevalent in the construction

industry, the ability to spot conflicts built into the baseline

schedule should be identified much earlier than is now common

during traditional schedule reviews. Quick reaction rescheduling

and workarounds should become much less common, thus

saving time and money on the site. Additionally, productivity

in the field should increase; delays due to schedule conflicts

and interferences should decrease; and the result should be a

decrease in productivity loss and delay claims.

AUGMENTED REALITY

Augmented Reality (“AR”) is a view of the real world

environment that has been augmented or supplemented by

computer generated input such as graphics or video. The

concept behind AR is to enhance the user’s perception of

reality.10 AR is not new, having been employed in military,

industrial, medical, commercial, and entertainment arenas for

years.11 The most common use of AR today is, probably, in the

videogame arena. However, with respect to the construction

industry, AR can assist in the planning and design process in that

AR can help in visualizing building projects.

“Computer generated images of a structure can be

superimposed into a real life local view of a property before

the physical building is constructed there; … AR can also be

employed within an architect’s work space, rendering into

their view animated 3D visualizations of their 2D drawings.

7. http://www.3ders.org/articles/20160728-this-brick-laying-3d-printer-robot-can-build-a-house-four-times-faster-than-a-human-bricklayer.html, July 29, 2016.

8. Fred Mills, “What Is 4D BIM?” www.TheBIM.com, The BIM Limited.

9. “Seeing is Believing – Interest Heats Up for Risk Reducing Tools that Marry Highly Detailed Schedules to Design and Construction Models,” Engineering New-Record, May 30/June 6, 2016.

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Architecture sightseeing can be enhanced with AR applications

allowing users viewing a building’s exterior to virtually see

through its walls, viewing its interior objects and layout.”12

During construction, AR has also shown itself to be extremely useful.

“With the continual improvements to GPS accuracy, businesses

are able to use augmented reality to visualize georeferenced

models of construction sites, underground structures, cables

and pipes using mobile devices. Augmented reality is applied to

present new projects, to solve on site construction challenges.”13

Using AR and 3D BIM models, designers, construction managers,

and contractors “can view a complex structure as if it were a 3D

model placed on a table, or zoom in for a 1:1 view that simulates

what it would be like to move through its structural framework.”14

Potential Impact on Construction, Project Management, and

Claims Mitigation – When fully implemented on a project, AR

can aid project participants in visualizing the complex details

of the project in much more detail than 2D drawings or even

3D BIM models. The Navigant Construction Forum™ believes

that the use of AR may help avoid encounters with differing site

conditions and spot design defects and errors before they are

encountered in the field, thus avoiding changes and reducing

delays attendant to such situations.

AUTONOMOUS CONSTRUCTION

The term “autonomous construction” today generally refers

to construction equipment that is navigated, maneuvered,

and operated by a computer, without the need for human

control or interventions under ordinary, planned conditions

at the site. There are three levels of autonomous construction

currently being worked on by equipment manufacturers and

construction contractors.

“With automation, a function of the machine is operated by

independent means. For instance, while a dozer itself retains an

operator, the blade is controlled by preprogrammed data.

With semi-autonomy, equipment and other site operations

are controlled remotely from a nearby office or even an

offsite location.

With autonomy, equipment essentially operates on its own,

thanks to sophisticated technologies that enable machines to

work safely with minimal inputs.”15

A review of current literature shows that fully autonomous

construction equipment is not yet common on the vast majority

of construction sites. However, fully autonomous equipment is

currently in operation on some large mining sites. Autonomous

mining truck fleets are operating at some iron ore mines in West

Australia and autonomous large bulldozers are being employed

at mining sites in Wyoming. Semi-autonomous underground

loaders are likewise being employed in mines in Nevada. As the

mining industry works out issues with autonomous and semi-

autonomous equipment, and as the cost of such equipment falls,

the use of such equipment will become more common.

Potential Impact on Construction, Project Management,

and Claims Mitigation – The use of autonomous and semi-

autonomous equipment on construction sites should result in

huge improvements to job site productivity and an increase in site

safety. Should this come about, the Navigant Construction Forum™

anticipates a reduction in lost productivity and delay claims.

BIM and VDC

BIM and Virtual Design and Construction (“VDC”) are becoming

more common in the construction industry – perhaps more on

vertical and technically complex projects than on horizontal and

less complex projects. BIM is a process – not an end point or a

product such as the completion of paper-based 2D drawings.

“A Building Information Model (BIM) is a digital representation

of physical and functional characteristics of a facility. As such it

serves as a shared knowledge resource for information about a

facility forming a reliable basis for decisions during its life cycle

from inception onward. A basic premise of BIM is collaboration

by different stakeholders at different phases of the life cycle of

a facility to insert, extract, update or modify information in the

BIM process to support and reflect the roles of that stakeholder.

The BIM is a shared digital representation founded on open

standards for interoperability.”16

10. Mark Graham, Matthew Zook, and Andrew Boulton, “Augmented Reality in Urban Places: Contested Content and Duplicity of Code,” Transactions of the Institute of British Geographers, 2012.

11. “Augmented Reality Landscape,” http://augmentedrealitybiz.com/augmented-reality-landscape/ August, 2012.

12. Devina Divecha, “Augmented Reality (AR) used in architecture and design,” http://www.designmena.com/inspiration/augmented-reality-ar-part-architecture-design, designMENA, Sept. 8, 2011.

13. Jason Churcher, “Internal accuracy vs external accuracy,” http://www.augview.net/News/Blog/archive-7May2013.html, May 7, 2013. See also, “Augmented Reality for Architecture &

Construction,” http://www.augment.com/augmented-reality-architecture/.

14. Greg Aragon, “AECOM and Trimble Use Mixed-Reality Technology for Engineering and Construction,” http://www.enr.com/blogs/12-california-views/post/39681/, June 24, 2016.

15. Mike Anderson, “Being Automatic, Autonomous … Or Somewhere In Between,” Engineering News-Record, July 25/Aug. 1, 2016.

16. Jason M. Dougherty, Claims, Disputes and Litigation Involving BIM, Routledge, New York, 2015.

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VDC has been described as follows:

“Virtual Design and Construction (VDC) is the management of integrated multi disciplinary performance models of design and

construction projects, including the product (i.e., facilities), work processes and organization of the design, construction, and operation

team in order to support explicit and public business objectives.

The theoretical basis of VDC includes:

• Engineering modeling methods: product, organization, process

• Analysis methods: Model-based design, including quantities, schedule, cost, 4D interactions, and process – these are termed Building

Information Modeling (BIM) tools

• Visualization methods”17

In the simplest terms, BIM is the computer model of the project available to all project participants for their information, their input, and/or

extraction of information throughout the life of the project, while VDC is the electronic version of the plan for construction of the project.

Dodge Data and Analytics recently performed a survey of larger (i.e., US$50 million or more in annual construction value) general

contractors, construction managers, and trade contractors to determine how these firms engage with BIM. The following table shows a

comparison of how general contractors and trade contractors use BIM.18

17. John Kunz and Martin Fischer, “Virtual Design and Construction: Themes, Case Studies and Implementation Suggestions,” Stanford University Center for Integrated Facility Engineering (CIFE) Working Paper #097, Version 14, January 2012.

18. Steve Jones and Donna Laquidara-Carr, “New Survey Reveals How GCs, CMs and Subs Engage in BIM,” Engineering News-Record, CBQ 16 ENR Contractor Business Quarterly, Summer 2016.

Construction Modeling Activity on Projects as Reported by General Contractors and Trade Contractors

BIM USES GENERAL CONTRACTORS TRADE CONTRACTORS

Crew Locations and Workforce Planning 14% 57%

Temporary Works 24% 45%

Construction Work Packaging 16% 38%

Safety Rule Packaging 8% 18%

Despite the different uses of BIM by general contractors and trade contractors, this survey indicated overall agreement that BIM

produces the following results, all of which benefit projects using BIM:

• Decrease in RFIs and RFCs

• Better construction documents

• Reduction in material waste

• Reduction in scheduling cost

• Reduction in final construction cost

• Reduction in reportable safety incidents

• Improved information mobility

• Improved collaboration on the project

• Reduction in unanticipated problems

• Fewer paper documents

• Improved productivity

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It is noted, however, that BIM and VDC are being employed primarily by larger firms and owners in the industry, as the cost and the

difficulties of implementing BIM and VDC are high hurdles for medium and small sized design and construction firms to overcome.

Additionally, there are myriad other challenges associated with the use of BIM in the design and construction processes that are also

difficult to overcome.19 However, BIM is being required by many owners and as this preference grows from the owner’s side of the

equation, the cost and the current challenges of using BIM on projects should decrease, thus allowing smaller firms to use this project

delivery method.

Potential Impact on Construction, Project Management, and Claims Mitigation – As the use of BIM becomes more widespread, the

Navigant Construction Forum™ believes that project management will become more proactive and less reactive as problems should be

identified earlier and resolved more easily. As a result, the number of changes, delays, and claims should be reduced, for the benefit of all

project participants.

DIGITAL FUTURE

McKinsey & Company published a report in June 2016 that addressed a potential digital future specifically for the construction

industry.20 The term “digital future” covers a huge array of technology changes, all of which seemingly will have positive impacts on

the industry. This report notes that “large projects” in the mining, infrastructure, and oil and gas sectors typically take 20% longer than

initially scheduled and are up to 80% over budget. The McKinsey study compares somewhat favorably with the SmartMarket Report

issued by the Navigant Construction Forum™ in December 2011, which concluded the following.21

Impact of Risks on Large Infrastructure Projects

IMPACTS % OF RESPONDENTS EXPERIENCING IMPACT

AVERAGE % OF PROJECTS IMPACTED

AVERAGE IMPACT

Delayed Completion 84% 24% 17%

Over Budget 86% 19% 14%

Disputes and Claims 76% 11% $3.1 million

19. Christopher L. Nutter, “Common Challenges Associated With Design and Construction Delivering Using Building Information Modeling,” Insight From Hindsight, Issue No. 18, Navigant Construction Forum™, Boulder, CO, May 2016.

20. Rajat Agarwal, Mukund Sridhar and Shankar Chandrasekaran, “Imagining Construction’s Digital Future,” McKinsey & Company, June 2016.

21. McGraw Hill Construction, Navigant Consulting and Pepper Hamilton, Mitigation of Risk in Construction: Strategies for Reducing Risk and Maximizing Profitability, McGraw Hill, New York, December, 2011.

The McKinsey study started by taking a broad brush to paint a fairly dismal picture of the construction industry with respect to

productivity, mainly due to a lack of adoption of technology innovations.

“While the construction sector has been slow to adopt process and technology innovations, there is also a continuing challenge when it

comes to fixing the basics. Project planning, for example, remains uncoordinated between the office and the field and is often done on

paper. Contracts do not include incentives for risk sharing and innovation; performance management is inadequate, and supply chain

practices are still unsophisticated. The industry has not yet embraced new digital technologies that need up front investment, even if the

long term benefits are significant. R&D spending in construction runs well behind that of other industries: less than 1 percent of revenues,

versus 3.5 to 4.5 percent for the auto and aerospace sectors. This is also true for spending on information technology, which accounts for

less than 1 percent of revenues for construction, even though a number of new software solutions have been developed for the industry.”

This report goes on to summarize a number of digital technologies that are currently available in the marketplace or close to becoming

available, but which are not yet widely used in the construction industry. A synopsis of these digital technologies follows:

• Higher definition surveying and geolocation – Under this heading the report lists electronic distance measurement; more accurate

Global Positioning System (“GPS”) and Geographic Information System (“GIS”) applications; high resolution photogrammetry;

LIDAR; improved GPR and magnetometers used with LIDAR; and high resolution cameras small and light enough to be mounted

on drones. Technologies such as these can develop both above ground and underground 3D images of project sites and can be

uploaded to other analytical and visualization systems for use in project planning and construction.

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• Next generation 5D building information modeling – 5D BIM is a five-dimensional

representation of the physical and functional characteristics of a project. This

system considers both the cost and schedule of a project, as well as such other

characteristics as geometry, specifications, aesthetics, thermal, and acoustic

properties. The system allows owners and contractors to record the impact of

changes to project cost and schedule. Additionally, 5D BIM gives project participants

the ability to identify risks earlier, thus reducing “surprises” on project sites.

• Digital collaboration and mobility – Process digitization means moving away from paper

and toward online, real time sharing of information to assist with project collaboration,

timely progress tracking, risk assessment, quality control, and, it is anticipated, better

and more reliable project outcomes. Replacing paper processes with digitization should

enhance and speed up information sharing and make information sharing more accurate.

Digitization of project information is intended to improve:

− Design management

− Project scheduling

− Materials management

− Crew tracking

− Quality control

− Contract management

− Performance management

− Document management

• The internet of things and advanced analytics – Construction project sites are

complex by their very nature, are often very dense with labor, equipment, materials,

subcontractors, vendors, etc., and projects generate large amounts of data, much

of which is not captured and retained, nor even measured and processed. IOT is

already available and in commercial use. Electronic sensors and wireless technology

are available that could make equipment and other project assets “intelligent.” This

technological advance combined with the use of near field communication (“NFC”)

devices and RFID tags can help monitor productivity and reliability of both staff and

assets in the following areas:

− Equipment monitoring and repair

− Inventory management and ordering

− Quality assessment

− Energy efficiency

− Safety

Potential Impact on Construction, Project Management, and Claims Mitigation –

The Navigant Construction Forum™ anticipates that increased use of new digital

technologies will improve the accuracy, reliability, and speed of project communications,

which is likely to decrease changes and delay claims. New digital technologies may

help reduce encounters with unknown underground conditions, thus decreasing the

likelihood of differing site conditions. Other technological advances should help improve

onsite equipment maintenance and improve material procurement that in turn helps

decrease the amount of project delay.

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DRONES IN CONSTRUCTION

One of the most visible and frequently mentioned changes in construction is the use

of UAVs – more commonly known as “drones.” The construction “industry is finding

a multitude of benefits from aerial photography and the collection of data with laser,

infrared and other sensors than can be used to produce 3D maps for earthwork

calculations, thermal imaging for inspection, and point clouds for BIM models.”22 This

survey found that contractors are already using UAVs for:

• Tracking job progress

• Logistics and production planning

• Inspection of areas difficult or impossible to access

• Safety monitoring and support

• Land surveying, thermal imaging, laser scanning, and other data collection

The chief executive officer of a drone manufacturer was recently interviewed and offered the

following observations concerning the use of drones in the construction industry.

“A large development site, like a highway or an apartment complex, needs to be meticulously

mapped by a team of surveyors. Depending on the project, this can take weeks or even

months. But a drone that is operating on highly sophisticated software and that has state

of the art cameras onboard can do even the most complex job in a fraction of the time,

sometimes in minutes … Aerial mapping is a huge cost saver. But it is also a tool that propels

construction into the future by giving developers information they previously had no access

to. … Knowledge is power. Knowing what needs to be done, and precisely how it needs to be

done. It is something that every project manager dreams about. Getting rid of the guesswork

brings a construction project into the 21st century, something that is long overdue.”23

Another recent article highlighted the potential cost savings resulting from the use of

drones on a construction project in the following manner.

“When it comes to paving roads, mistakenly adding a quarter inch of extra material over 10

miles can boost the final bill by a quarter million dollars. To avoid such mistakes, managers

are increasingly seeking to improve the overall precision and accuracy of construction

projects with automatic machine guidance (“AMG”). AMG links construction equipment

with onboard computers that use data from 3D models and GPS to guide operations –

saving time and money as well as improving safety and quality.”24

This particular article explains how drones are currently carrying and using RGB

cameras.25 However, the article notes that the drone is capable of carrying small LIDAR

sensors also. Unlike many other drones that are manually operated by someone on the

ground with a radio-control device, drones such as the one discussed in this article

navigate by use of GPS Real Time Kinetic (“RTK”) technology and are designed to be

controlled by a robotic total station.

22. ConstructionPro Network, “Drones in Construction – 2015 Survey Report,” ConstructionProNet.com, WPL Publishing Co., Inc., Rockville, MD, 2016.

23. Joe A. Kunzler, “Drones Have Brought the Construction Industry Into the Future,” TECH.CO, http://tech.co/drones-

construction-future-2016-9, Sept. 6, 2016.

24. Charles Choi, “Drone Surveys Improve Automated Road Construction”, http://insideunmannedsystems.com/drone-surveys-improve-automated-road-construction/, Nov. 7, 2016.

25. An RGB camera delivers the three basic color components (red, green, and blue) on three different wires. This type of camera often uses three independent CCD sensors to acquire the three color signals. RGB cameras are used for very accurate color image acquisitions. A charge coupled device (“CCD”) is a device for the movement of an electrical charge, usually from within the device to an area where the charge can be manipulated, for example conversion into a digital value. This is achieved by “shifting” the signals between stages within the device one at a time.

12

The biggest holdup to the widespread use of drones has been,

until quite recently, the lack of Federal Aviation Administration

(“FAA”) rules and regulations resolving the legal status of

operating drones commercially. This issue has been resolved

in the main by the issuance of FAA rules concerning the use of

commercial unmanned aircraft systems (“UAS”) or drones on

June 21, 2016. These rules outline the following:

• The weight of commercial drones allowed (55 pounds)

• The maximum height at which drones can be flown (up to

400 feet)

• The maximum speed drones can be flown at (up to 100 miles/hour)

• Requires the use of anti-collision lights on drones after

twilight

• Requires that drones can only be flown within the line of sight

of the operator

• Sets the minimum age of drone operators ( must be at least

16 years old)

• Requires that all operators obtain Remote Pilot Airman

Certification from the FAA that requires passing a written

aeronautical test and undergoing a background security check

These FAA rules have a large amount of additional discussion,

information, and detailed requirements, as this Final Rule is

624 pages long.26 FAA has announced that they will be looking

at issuing further rules for larger drones but these additional

rules have not yet been set forth. However, Secretary of

Transportation Anthony Foxx appears to recognize the value

of drones for use in inspecting utility towers, antennas, bridges,

power lines and pipelines in mountainous areas. When these

new rules were issued earlier this year, Foxx was quoted, in the

previously cited article, as saying:

“This is a major milestone for safely integrating unmanned

aircraft systems into our nation’s airspace. … These aircraft truly

have the potential to transform the way we fly and they offer

many potential benefits to society … in many cases, unmanned

aircraft can perform these activities with much less risk than a

manned aircraft that might have to fly into dangerous terrain or

in bad weather.”

Drones, combined with artificial intelligence, are also

being looked at as a major way to improve productivity on

construction sites. A recent news article from the Japan

Economic Newswire reported the following:

“The [Japanese] government unveiled plans … to raise

productivity at construction sites by 20 percent from current

levels by 2025 through the use of drones and artificial

intelligence in the construction industry … Prime Minister Shinzo

Abe vowed to wipe out the image of construction work as being

dangerous, dirty and demanding, and ‘drastically’ change the

working environment. The [Japanese] government envisions

using drones to carry out surveying at sites of public works such

as tunnels, bridges and dams. The use of artificial intelligence is

aimed at dramatically reducing the time required to carry out

land surveys.”27

One takeaway concerning the use of drones was highlighted in

a recent issue of Engineering News-Record.28 This article posed

six questions that contractors should address before they begin

using drones on their sites. The questions are the following:

• Have you applied for and received your FAA approval?

• Have you developed a plan on exactly how you intend to

use drones or UAVs, including risk management and safety

procedures?

• Have your operators passed the aeronautics test required for

them to serve as a pilot?

• Are you aware of the surroundings the drones will be

operating in?

• Have you considered the insurance implications for using

UAVs or drones in your business?

• Have you considered the reputational risk your firm could

face if your drone/UAV was found operating too close

to others’ property, especially if you accidentally (or

intentionally, due to a rogue operator) film something that

others didn’t want taped and it was released to the public?

Potential Impact on Construction, Project Management, and

Claims Mitigation – The Navigant Construction Forum™ believes

that the use of drones can improve project management in a

number of ways – surveying and mapping; creating 3D maps

for earthwork calculations; inspection purposes; providing

detailed, accurate information for BIM models; tracking job

progress; aiding in logistics and production planning; safety

monitoring; thermal imaging; laser scanning; and controlling

equipment operations. Some have speculated that drones, at

some point in the future, may even be used to deliver materials

to construction sites. However, the Navigant Construction

Forum™ was unable to locate information indicating that any

construction company currently using drones is pursuing this

potential use. Perhaps, once the FAA issues new rules on larger

drones, this potential use will be realized. Considering the

26. Office of the Secretary of Transportation, U.S. Department of Transportation, Federal Aviation Administration, 14 CFR Parts 21, 43, 61, 91, 101, 107, 119, 133, and 183, June 20, 2016.

27. Kyodo, “Government Eyes Raising Construction Site Productivity with Use of Drones,” ENR Digital Wire, http://www.enr.com/external_headlines/story?region=enr&story_id=u4pRrjFtCvID9HNews, Sept. 21, 2016.

28. Tom Boudreau, “Six Questions to Ask Your Construction Clients Before They Begin Using Drones,” Engineering News-Record, Oct. 31, 2016.

13

information located concerning the use of drones in construction

by the Navigant Construction Forum™ in preparing this research

perspective, the Forum has concluded that drones may be very

successful in reducing claims and disputes. The ability to deliver

real time information on project progress and more accurate

data for use in surveying, inspections, safety monitoring, etc.,

should decrease errors and omissions in drawings, changes or

constructive changes during the performance of the work, etc.

Finally, the Navigant Construction Forum™ acknowledges that

there is some degree of risk accompanying the use of drones

that contractors must be aware of and be prepared to deal with.

GEOSPATIAL TECHNOLOGY

Much has been written about the use of BIM in design,

construction, and operations and maintenance. However, it is

noted that:

“When one designs a building, typically one never designs

specific to the actual location where it would be built. There’s a

virtual reference point and everything in the design is relative

to that reference point. It is only now there has been the need

to fix this piece of infrastructure to a ‘location’ on the planet as

people want to perform. Structures can no longer be designed

in isolation; sustainability requires that buildings and other

structures be designed in the context of their geolocation. This is

driving the convergence of geospatial and 3D technologies.”29

So what exactly is “geospatial technology”? One of the earliest

articles the Navigant Construction Forum™ could locate on this

topic defined the term in the following manner:

“Geospatial technology refers to equipment used in visualization,

measurement, and analysis of earth’s features, typically

involving such systems as GPS (global positioning systems), GIS

(geographical information systems), and RS (remote sensing).

Its use is well known and widespread in the military and in

homeland security, but its influence is pervasive everywhere,

even in areas with a lower public profile, such as land use, flood

plain mapping and environmental protection.”30

In its simplest terms, harnessing geospatial technology to BIM

provides more detailed and accurate information to the project

participants through the planning, design, and construction

process. As a result, BIM plus geospatial technology improves

collaboration among the project participants by enabling better

communication with the project owner through accurate 3D

visualization of the proposed design.

The geospatial technology process for a project has multiple

steps that have been described in the report entitled “Geospatial

+ Building Information Modelling: Enhancing Productivity,

Efficient, Compliances and Mechanisation for the Construction

Industry,” and are outlined briefly below:

• GIS inventory of all existing geospatial data of the proposed

site and surrounding area

• Satellite remote sensing to create satellite images

• Total station to measure horizontal distances, slope distances,

angles, vertical height differences, three dimensional

coordinates and other positional features

• GPR to geolocate underground infrastructure

• Photogrammetry to project objects on the terrain (the project

site and surrounding area)

• Laser scanning and LIDAR for reality capture at the outset of

the project and during construction

• Scan to BIM to incorporate all data into the BIM model

• Point cloud data, 3D modeling and visualization during the

design phase;

• Machine control and automation using the global navigation

satellite system (“GNSS”) positioning technology and

digital design files to steer construction equipment and

communicate with other equipment on site

• Positioning systems to aid in asset and material management

for the project (e.g., to track the location of a dump truck and

plan efficient routes for the truck’s tasks)

To make all of the above happen requires compatibility and

complementary standards. Quite recently, the International

Organization for Standardization (“ISO”), BuildingSMART

and the Open Geospatial Consortium (“OGC”) developed

a compatible BIM/Geospatial standard entitled the OGC

LandInfra Conceptual Model. Now that the value proposition of

connecting geospatial technology and BIM is known and there is

a recognized standard to provide for this interconnection, what

is holding up the adoption of this technology in the construction

industry? The answer appears to be the following:

“The three biggest hurdles in the adoption of geospatial are the

lack of expertise … resistance to change … and cost.”31

29. “Geospatial + Building Information Modelling: Enhancing Productivity, Efficient, Compliances and Mechanisation for the Construction Industry,” Geospatial Media + Communications, www.geospatialmedia.net, 2015.

30. Marlene Cimons, “Geospatial Technology as a Core Tool: Impacts Everything from Navigating to Law Enforcement,” www.usnews.com, May 11, 2011.

31. Luke Abaffy, “Trends of Building Information Modeling and Geospatial Use in Construction,” Engineering News-Record, http://www.enr.com/articles/39980-trends-and-prospects-for-geospatial-and-building-information-modeling Aug. 3, 2016.

14

Potential Impact on Construction, Project Management, and

Claims Mitigation – The Navigant Construction Forum™ believes

that as these three hurdles are overcome in the construction

industry the use of geospatial technology will expand. Once

this occurs, project managers will have access to accurate,

real time data and information, making their jobs easier.

Likewise, communications on the project will improve given the

enhancement of project data that will likely result in a decrease

in claims and disputes such as differing site conditions, changes,

delays, etc.

RADIO FREQUENCY IDENTIFICATION TECHNOLOGY

RFID is not new technology but appears to be spreading more

widely across the construction industry. RFID technology has

demonstrated its value in the following areas on construction sites.

• Logistics and supply chain visibility

• Inventory tracking

• Personnel tracking and timekeeping

• Materials management

• Access control

• Asset and equipment tracking

• Tool tracking

• Real time location systems (“RTLS”)

Such uses can help increase site productivity by making it easier

to locate stored materials in the laydown area and track where

tools and equipment are stored.

Potential Impact on Construction, Project Management, and

Claims Mitigation – The Navigant Construction Forum™ believes

that any technology that helps increase labor productivity is good

for projects and will likely decrease productivity loss claims.

REALITY CAPTURE TECHNOLOGY

Very basically, “reality capture” is the use of various technical

tools to capture a 3D model representation of a real world

object. More technically:

“Where traditional 3D modeling techniques are slow and only

as accurate as the artist or designer makes them, reality

capture can capture detailed, accurate digital representations

in minutes. Reality capture can be achieved by techniques such

as LIDAR, where lasers take detailed scans of a subject, taking

measurements and creating point cloud data in an xyz axis. This

point data is reconstructed into a 3D model. While accurate,

LIDAR only captures 3D data leaving color out. Photogrammetry

is another method by which reality capture is achieved. This

type of reality capture uses photographs to reconstruct a

3D image. While this method can require multiple photos to

complete a model (typically with a minimum of 2), it can also

capture the colors of the subject, translating them into the

texture map of the model to further save time in creating assets

... Photogrammetry can also be used to recreate motion paths of

subjects. Even 3D cameras … can be used for reality capture.”32

Reality capture can save laborious modeling of background

assets. Reality capture is fast and convenient and can reduce the

need for human effort. A case study concerning reality capture

was highlighted in a recent article concerning a brownfield

redevelopment planning project.

“In Coatesville, Pa., a depressed, rust-belt town about 40 miles

west of Philadelphia with a population of 13,100, the city

manager and the town’s consulting engineers are using 3D

reality capture to help prospective developers see a diamond

in the rough. … In just a few minutes, a drone captured more

than 750 aerial photos of ‘The Flats,’ a rugged, 30-acre former

steel-mill site. The … software processed the drone’s photos,

combining them with old survey data and other photos to create

a detailed model of the site —all without anyone having to set

foot on it. The model includes a significant amount of stockpiled

clean fill, which is a sweetener for any redevelopment deal.”33

Potential Impact on Construction, Project Management,

and Claims Mitigation – The Navigant Construction Forum™

believes that the expanded use of reality capture will help

provide much more accurate information on project sites and

their surroundings for use by all project participants. From the

construction claims perspective, such a development will likely

help reduce site condition and constructive change claims.

ROBOTICS

Robotics in construction, until recently, has been a matter of

speculation despite the common use of robotics in manufacturing

and other areas of life. The term “robotics” is defined as:

“Robotics is a branch of engineering that involves the conception,

design, manufacture, and operation of robots. This field overlaps

with electronics, computer science, artificial intelligence,

mechatronics, nanotechnology and bioengineering.” 34

32. Margaret Rouse, “Reality Capture,” Software Development Glossary, http://whatis.techtarget.com/definition/reality-capture, Oct. 2016.

33. Tom Sawyer, “Scheming and Dreaming with Reality-Capture Technology,” Engineering News-Record, July 25/Aug. 1, 2016.

34. Margaret Rouse, “Robotics,” http://whatis.techtarget.com/definition/robotics, Oct. 2015.

15

The Massachusetts Port Authority (“Massport”) sponsored

a research report concerning robotics in construction. In

the introduction to the final report, the authors included the

following statement.

“This study explores how robotics is being used, and could

be used in the future, in the field of construction. Robotics

as a whole is a synchronous combination of mechanical,

electrical, and software engineering. It is a field that aims to

better the lives of humans in tasks that are dangerous, dirty,

or demanding. Construction is the process of creating or

renovating a building or an infrastructure facility. Due to the

evolving field of robotics, the goal of this project is to find out

how robotics can be implemented into construction tasks and

to identify as many robotics technologies as possible that can

have some application in construction, while also determining

if any of these potential technologies can be integrated in the

near future. This could potentially facilitate many construction

processes to make them safer for workers, take up less time, or

even to perform simple tedious tasks.”35

The report noted the following.

“The rate at which construction progresses is subject to variability.

Productivity depends on many variables including the weather and

worker productivity which depends on factors such as overtime,

morale and attitude, fatigue, stacking of trades, mobilizing and

demobilizing, general errors, reassignment of manpower, crew size

inefficiency, hazardous work areas, and the list goes on … a common

underlying factor to this variability is natural human imperfection.”36

This research report went on to identify a number of ways

robotics can be used in construction – some already in use,

limited though they may be, and some still in a developmental

phase. The report discussed the following:

• Demolition Robots – Robots used to tear down walls,

buildings, etc. There are three types of demolition robots:

multitooled, hydropowered and ecofriendly. All three types

perform the same function but in different ways.

• Printing and Contour Crafting Robots – These are robots that

are used in conjunction with 3D printing.

• Drones – Although previously discussed in this research

perspective, it is worth noting that drones may be truly

unmanned, flying robots. This category includes contour

crafting robots, swarms of drones, transportation drones,

surveying drones, and monitoring drones.

35. Alexander Ruggiero, Sebastian Salvo and Chase St. Laurent, Robotics in Construction, Worcester Polytechnic Institute, March 24, 2016.

36. Ruggiero, Salvo and St. Laurent, Robotics in Construction.

37. “Exoskeletons” are defined as rigid external coverings for the body in some invertebrate animals, especially arthropods, providing both support and protection.

38. Nicholas Zeman, “‘Robot’ Welders As Labor Boost on Tappan Zee Bridge Piles Spur Controversy,” Engineering News-Record, June 17, 2014.

• Bricklaying Robots – As the name states, these are robots

that assemble the masonry structure of a building.

• Welding Robots – Again, the name is self-explanatory. These

are robots designed and programmed to perform welding

functions on a site.

• Exoskeletons37 – This refers to “robotic exoskeleton suits

working with humans to enhance a task or ability the human

body lacks. Intelligent suits are meant to increase the

strength of the average user, endurance, speed, agility, etc.”

Such suits allow for injured or disabled workers to work in

construction or allow workers to lift and transport heavier

objects than normal.

• Forklift Robots – Such robots are used to transport heavy or

large objects on project sites.

• Roadwork Robots – These are robots used to repave and/or

restripe roadways.

• Humanoid Robots – These robots are still in the conceptual

and developmental stage and may be years away from

practical day to day use on construction sites. When (if)

perfected, humanoid robots conceivably will be able to

perform any task that a human can perform on the site.

Another article added an additional function not named

above – robotic security guards. These robots are also in the

developmental stage. As conceived, these robots will use

sensors, predictive analytics, and thermal imaging to hear, feel,

smell, and send reports back to a control center.

An ongoing, practical example of the use of robotics in

construction was featured in a 2014 article concerning the

construction of the Tappan Zee Bridge project in New York. The

article discussed the issue in the following manner.

“With qualified welders in short supply on the $3.9 billion Tappan

Zee Bridge north of New York City, contractors have brought in

robots from Louisiana … The robotic welders … are needed to

speed installation of the bridge’s giant piles, which measure up

to 8 ft. in diameter … About 25 machines have been supplied to

the bridge project … with each requiring a four person crew to

operate. … While robots can work up to twice as fast as workers

with fewer defects, the machines required human intervention

to prevent problems in the welding process, with a mixed

success rate.”38

16

Potential Impact on Construction, Project Management, and Claims Mitigation – Assuming that robotics continue to advance and

are adopted more widely in the construction industry, it appears likely that robotics will improve site productivity and site safety – as

robots may be able to perform work that is more likely to cause accidents. As productivity increases, claims concerning productivity

loss and resulting delay should decrease.

SITE SAFETY

Construction site safety and accident prevention are of concern to contractors, subcontractors, owners, designers, and construction

managers. Contractors are especially sensitive to these issues, as they are, as a group, potentially liable under the Occupational Safety

and Health Act (“OSHA”), and the resulting increase to the cost of their workers’ compensation and, perhaps, other insurance policies,

etc. A recent article highlighted the top 10 causes and the cost of workplace injuries. The annual net total cost of these top 10 causes is

$51.06 billion or $1.0 billion per week. A summary of these top 10 causes and their costs are set forth below.

Workplace injuries are painful, and sometimes devastating, for employees, their families, and their employers. Contractors work hard

to reduce accident rates, including forming safety committees; holding routine toolbox safety meetings onsite; investing in safety

equipment; providing ongoing safety training; conducting site safety assessments; and employing safety engineers/inspectors onsite.

Technology has advanced to the point where predictive analytics can be used that takes into account a variety of work related factors

to anticipate future behavior. One example of this technology is Vantage Predictive Analytics, which is advertised as a Software as a

Service (“SaaS”) solution. “Each employee’s score provided the insight management needs to take action before an incident occurs …

This results in a reduction in injuries and associated costs including insurance premiums. … Case study after case study has shown that

those companies who utilized Vantage Predictive Analytics reduced injuries.”40

Another example of technology advances that support a reduction in safety incidents was recently highlighted in another article.41 This article

discusses Cyber-Physical Systems (“CPS”). CPS is defined as:

“Engineered systems that are built from, and depend on, the seamless integration of computational algorithms and physical components. The

agency [National Science Foundation] believes CPS will enable advancements in capability, adaptability, scalability, resiliency, safety, security

and usability in embedded systems by being a driving force behind continued innovation and competition in industries such as agriculture,

energy, transportation, building design, healthcare and manufacturing.”

39. Julie Copeland, “Top 10 Causes and Costs of Workplace Injuries,” http://www.arbill.com/arbill-safety-blog/author/julie-copeland, 2016.

40. Julie Copeland, “Take a Proactive Approach to Preventing Workplace Injuries,” http://www.arbill.com.

41. Penn State College of Engineering, “Cyber Monitored Buildings Will Enhance Construction Site Safety,” http://www.claimsjournal.com/news/national/2016/08/01/272479.htm, Aug. 1, 2016.

Top 10 Causes and Costs of Workplace Injuries39

CAUSES COST (IN US BILLIONS)

Overexertion $15.08

Falls on Same Level $10.17

Falls to Lower Level(s) $5.40

Struck by Object or Equipment $5.31

Other Exertions or Bodily Reactions $4.15

Roadway Incidents Involving Motorized Land Vehicle $2.96

Slip or Trip Without Fall $2.35

Caught in/Compressed by Equipment or Objects $1.97

Struck Against Object or Equipment $1.85

Repetitive Motions Involving Micro Tasks $1.82

17

dashboards” to track such metrics and provide early warning signs of

project troubles.44

• Deficiency Management – There are mobile applications that help

construction teams manage deficient work items. “Everyone can

access the [deficiency] list in real time, see what needs fixing, and

submit photos when the work is done … [This software] helps

construction projects get finished sooner and subcontractors get

paid faster.”45

• Equipment Operations and Management – There is software

available that provides project management staff with real

time information on the status of equipment moves, scheduled

equipment maintenance and repair, and job schedules. The software

can also can receive needs from foremen that appear in real time

in the schedule process and can receive up-to-date information

on planned or emergency equipment repairs that can impact the

project schedule.46

• Online Conflict Resolution Service – Of particular interest to the

Navigant Construction Forum™ is a new, online conflict resolution

system called Settle-Now. According to the article released in

October 2016:

“The Settle-Now approach blends facilitation, negotiation, mediation,

and arbitration to yield a superior system that can often resolve cases

within hours, rather than weeks, months, or even years. The simple

User Experience often requires no actual help from professionals.

However, Settle-Now also offers instant access to a vetted pool

of incredibly talented professionals who keep the process moving

toward resolutions where both parties are not just relieved that their

conflict is over, they’re authentically happy with the outcome.”47

Potential Impact on Construction, Project Management, and

Claims Mitigation – The Navigant Construction Forum™ is

cognizant that there are a large number of other project and

program management software packages available to the

construction industry. The Forum chose to highlight these

applications because the latter three are unusual while the first

software discussed is more common. The Forum is of the opinion

that all of these applications will improve project communications

that will, in turn, improve project management practices. And, as

project communications and management practices improve, the

likelihood of claims and disputes should decrease.

42. Jeff Rubenstone, “Belt Clip Tracks Workers, Logs Safety Incidents to the Cloud,” Engineering News-Record, http://www.enr.com/articles/40821-belt-clip-tracks-workers-logs-safety-incidents-to-the-cloud, Nov. 2, 2016.

43. Luke Abaffy, “Intrusion Detection System Protects Workers and Trains,” Engineering News-Record, http://www.enr.com/articles/40203-intrusion-detection-system-protects-workers-and-trains, Sept. 14, 2016.

44. Innotas, “The Project and Portfolio Management Landscape, 2016,” www.innotas.com.

45. Rick Spence, “How these two women are bridging a gap between the construction industry and new technology,” http://business.financialpost.com/entrepreneur/growth-strategies/how-these-women-are-bridging-a-gap-between-the-construction-industry-and-new-technology, Aug. 4, 2016.

46. Pam Kleineke, “Learn How Software Streamlines Operations for Busy Construction Companies,” http://compactequip.com/business/learn-how-software-streamlines-operations-for-busy-construction-companies/, June 15, 2016.

47. David Puckett, “Settle-Now Proudly Welcomes the World to Something Truly New in Conflict Resolution,” http://www.prweb.com/releases/2016/10/prweb13761150.htm, Oct. 18, 2016.

Penn State College of Engineering prepared a study

investigating how linking sensors on structures and virtual

models can better ensure the safety of construction workers on

or around temporary structures. Monitoring of these temporary

structures remains one of the largest safety concerns on job

sites. The investigation concluded that CPS monitoring can

promote safer construction and prevent failure of temporary

structures through “virtual prototyping, data acquisition systems

and communication networks.”

Two other examples of how new technology can enhance project

site safety include the following.

• Spot-R – This is a small, belt mounted sensor that automates

safety reporting on project sites. The sensor unit, combined

with a wireless system, tracks worker movements and logs their

activity data. The sensor utilizes an accelerometer, a gyroscope,

and an altimeter to instantly recognize when and where a

worker has fallen or stumbled. The sensor provides real time

notification of hazards and injuries. This allows safety managers

and superintendents to know where and when a safety incident

occurred and logs all relevant data concerning each incident.42

• Intrusion Detection Systems – The current intrusion detection

system, Railroad Intrusion Detection System (“RIDS”),

has been employed on a major transportation network

on the West Coast.43 The system employs tilt sensors on

barrier fences and infrared cameras for intrusion detection.

Such systems should help enhance worker safety on rail

transportation and potentially on other surface transportation

construction projects.

Potential Impact on Construction, Project Management, and Claims

Mitigation – It appears to the Navigant Construction Forum™ that

developing technology can improve site safety and prevent onsite

accidents. If such systems are widely employed on construction sites,

accidents should decrease and delay claims related to such events

should likewise decrease.

SOFTWARE ADVANCES

Various software applications have been invented and are currently

available to assist with project management, including the following:

• Project Management Software – There are numerous software

packages on the market that allow project and program management

teams to establish formal metrics for each project and utilize “project

18

WEARABLE TECHNOLOGY

Wearable technology is now common in everyday life with the advent of fitness trackers,

wearable cameras, smartwatches, heart rate monitors, GPS tracking devices, in ear sleep

headphones, smart virtual assistants, etc. Wearable technology is now coming into the

construction industry.

“Further fueled by the Internet of Things, wearable technology has become a very big

deal. … The wearable space has expanded dramatically to include smart hats, shoes,

glasses, jewelry, watches, helmets, and more. These accessories carry embedded

actuators, biosensors, and gyroscopes to follow movement heart rates, stress level,

and countless other metrics. … Smart gadgets are increasing workplace safety and

improving operation efficiency in construction sites across the country.”48

Research indicates that there is a good deal of wearable technology currently available

on the market and in use on construction sites. Following are some examples of

wearable technology available for use in construction.49

• Augmented Wearable Glasses – Although not yet perfected for construction, the

available versions of such glasses are intended to allow contractors and craft labor to walk

through a job site and see the finished structure and environment data through digital

safety goggles while transforming data and media at the same time to a cloud solution.

• Virtual Reality Headsets – Virtual reality headsets interact with project plans through fully

immersive and interactive software combined with sensors .

• Microsoft HoloLens – These glasses not only display data for the wearer to feel

completely immersed in the visualization but a 3D scanner collects data and interacts

with the visualization.

• Daqri Smart Helmet – This helmet includes an augmented reality display that provides

real time data.

• Smartwatches and Health Trackers – Health bands track construction worker heart

rate, perspiration, temperature, and activity. Armband monitors can manipulate the

environment around the wearers and/or interact with smart glasses. iBeacons around

the job site can provide environmental conditions and worker locations, and can provide

feedback on both based on GPS data.

• Safety Vests – The safety vests currently in development are intended to alert highway

workers of moving objects (like cars or trucks) that are approaching. The alert function

is able to adjust the volume of the alert based on ambient noise on the site. Other safety

vests in development include touch sensors, and will be able to monitor worker conditions

like a health sensor.

• Pulse Oximeter – Fitted to a hard hat, these devises detect the onset of carbon monoxide

poisoning and alerts labor in the area.

• Wearable Safety Badges – Such badges track crew locations in real time with 8 inch

accuracy. When labor enters a hazardous area these wearable badges or a flashing light-

emitting diode (“LED”) vest alerts workers to the danger.

48. Thomas Appel, “Can wearables transform the construction industry?” http://readwrite.com/2016/08/02/wearable-technology-transforming-the-construction-industry-dt4/, Aug. 2, 2016.

49. James Benham, “The Evolution of Wearable Tech in Construction Industry, Part 2,” http://jamesbenham.com/the-evolution-of-wearable-tech-in-construction-industry-part-2, Sept. 24, 2015. Andrew Ferguson, “Wearable Technology by Industry Series: Vol. 5 – Construction,” https://brainxchange.events/wearable-technology-industry-series-construction/, April 15, 2015. Marla McIntyre, “Wearables Wanted Onsite,” http://www.constructionexec.com/Articles/tabid/3837/entryid/6438/wearables-wanted-onsite.aspx, July 7, 2016.

19

Potential Impact on Construction, Project Management, and Claims Mitigation – The Navigant Construction Forum™ understands

that there are likely a large number of other wearable technologies available not included in the list above. But the Forum believes this

list is sufficient to make the point that these technological advances are improving project communication, sharing accurate real time

information with project participants, and improving site safety. All of these improvements are likely to decrease claims concerning delays,

productivity loss, differing site conditions and constructive changes.50

WHERE DO WE STAND TODAY?

As the Navigant Construction Forum™ has illustrated in this research perspective, technology in the construction industry has been

under development for some time and is poised to impact both project management and construction claims and disputes in a positive

fashion. The question remains, how many construction industry stakeholders are already adopting these technological advances? A

recent report providing some answers to this question indicates the following.51

Technology Adoption by Company Size52

COMPANY SIZE CUTTING EDGE, VISIONARY

INDUSTRY LEADER INDUSTRY FOLLOWING

BEHIND THE CURVE

<US$1 Billion 3% 22% 32% 43%

US$1-5 Billion 14% 23% 39% 25%

US$5-20 Billion 11% 18% 50% 20%

US$20 Billion + 7% 46% 20% 27%

Technology Adoption by Region

REGION CUTTING EDGE, VISIONARY

INDUSTRY LEADER INDUSTRY FOLLOWING

BEHIND THE CURVE

Americas 10% 25% 41% 24%

ASPAC 7% 17% 37% 39%

EME 7% 30% 23% 41%

Africa 0% 13% 33% 53%

Technology Adoption by Entity

ENTITY CUTTING EDGE, VISIONARY

INDUSTRY LEADER INDUSTRY FOLLOWING

BEHIND THE CURVE

Owners 5% 22% 36% 37%

Contractors 11% 25% 36% 28%

50. The Navigant Construction Forum™ notes that there is a potential downside legal risk involved with the use of some of wearable technologies. Some attorneys are already warning about potential invasion of privacy issues, potential discrimination lawsuits, and/or illegal recordings without “consent of everyone being recorded.” See Karen Turner, “Are performance monitoring wearables an affront to workers’ rights,” The Washington Post, https://www.washingtonpost.com/news/the-switch/wp/2016/08/05/are-performance-monitoring-wearables-an-affront-to-workers-rights/, Aug. 5, 2016. See also, Debra Cassens Weiss, “Wearable technology that monitors workers could lead to legal problems for employers, lawyers say,” ABA Journal, http://www.abajournal.com/news/article/wearable_technology_that_monitors_workers_could_lead_to_legal_problems_for/, Aug. 9, 2016.

51. KPMG International, “Building a Technology Advantage: Harnessing the Potential of Technology to Improve the Performance of Major Projects – Global Construction Survey 2016,” www.kpmg.com/gcs.

52. Numbers in the following tables may not add up exactly to 100% due to rounding.

20

Based upon this survey, the Navigant Construction Forum™

concludes that these technology improvements are starting to

gain traction in the construction industry, but there is a long

way to go before these advances become ubiquitous in the

industry. The survey noted that for this group of large owners

and contractors:

• 42% of respondents use drones to monitor construction

status

• 30% use robotics or automated technology

• 65% use remote monitoring onsite

• 30% use RFID to track equipment and materials onsite

• 17% use smart sensors to track personal onsite

• 61% use BIM on a majority of their projects

The above percentages may very well be explained by the

demographics of the survey respondents. The survey respondents

were 218 senior executives – 199 from major project owners and

99 from a range of engineering and construction companies.

Participating organizations included both private companies and

government agencies. The respondent’s companies ranged in

annual volume from US$1 billion to +US$20 billion. And, owner

entities came from many industries, including energy and natural

resources, technology, and healthcare.

The survey concluded that the primary drivers for adoption of

these technological advances are the following:

• Efficiency, planning, and cost reduction

• Competition and market forces

• New markets, growth, and profitability

• Client needs and meeting demand

• Technology and talent

• Increasing regulation

What this survey of major players in the construction industry

concluded was:

• The construction industry has not yet fully embraced new

technology.

• Data volume resulting from these new technologies is rising

exponentially, but many are struggling to make sense of the

information gathered.

• Integrated, real time project reporting is still a dream, not a

reality.

• There is more to come from mobile technology.

• There is still much room for improvement in project

management basics.

This particular survey may lead one to believe that the

construction industry is making great strides in adopting

advanced construction technology. However, the Navigant

Construction Forum™ believes that this survey is not truly

representative of the average U.S. construction company.

The Navigant Construction Forum™ located what the Forum

believes is a much more robust survey of the use of construction

technology in the industry, released in late 2015.53 This survey

was conducted by JBKnowledge, Inc. in conjunction with the

Construction Financial Management Association (“CFMA”), the

Texas A&M University Department of Construction Science and

HCSS Construction Software. The survey was distributed to some

30,000 construction industry professionals. A total of 2,044

responses were received – a 6.8% response rate. For various good

reasons, 424 of the responses were removed, bringing the final

survey responses used in the analysis to 1,620 or a 5.4% response

rate. More information concerning this survey follows.

53. JBKnowledge, Inc., “The 4th Annual Construction Technology Report (2015),” http://www.JBKnowledge.com.

21

Company Type

COMPANY TYPE PERCENTAGE

Contractor/Construction Manager 72.5%

Subcontractor/Material Supplier 19.0%

Architectural/Engineering/Design Firm 2.4%

Owner/Developer 2.2%

Government Agency 0.4%

Other 3.6%

Size of Companies

COMPANY SIZE PERCENTAGE

1-5 Employees 3.5%

6-20 Employees 7.5%

21-50 Employees 14.2%

51-100 Employees 15.0%

101-200 Employees 16.0%

201-500 Employees 19.8%

501-1,000 Employees 8.8%

Over 1,000 Employees 15.2%

Industry Type

INDUSTRY TYPE PERCENTAGE

Commercial 66.2%

Transportation 22.6%

Residential 14.0%

Industrial 13.7%

Water/Wastewater/Solid Waste 12.5%

Power 9.0%

Oil & Gas 7.5%

Manufacturing 6.1%

Telecommunications 2.5%

Hazardous Waste 1.4%

22

Annual Sales Volume

ANNUAL SALES VOLUME PERCENTAGE

Less than US$1 Million 3.5%

US$1-$5 Million 5.6%

US$6-$20 Million 14.5%

US$21-$50 Million 18.6%

US$50-$100 Million 15.6%

US$201-$500 Million 13.6%

Over US$500 Million 16.7%

Daily Device Usage

DAILY DEVICE USAGE

LAPTOP TABLET SMARTPHONE WEARABLE

Total 85.6% 69.4% 97.6% 9.2%

Personal 23.3% 38.9% 35.9% 71.4%

Company Provided 91.0% 74.5% 81.1% 33.3%

The Navigant Construction Forum™ believes that this survey provides a more representative picture of how the U.S. construction

industry, at least, is progressing with respect to the adoption of new technology. Some of the more relevant findings of this survey are

set forth below.

• Mobile Technology – When asked how important mobile technology was to the respondents, the answers indicated the following.

− Not important = 22.6%

− Important = 45.9%

− Very important = 31.5%

• Daily Device Usage – When asked about daily device usage, by type and who provides such devices, the responses showed the

following results.

• Software in Use – When asked about what type of software was in use on their projects the respondents replied in the following

manner.

− Project Scheduling Software – 95.6% of the respondents use network logic driven computerized software, while 4.4% rely on

other software or manual systems for scheduling their projects.

− Project Management Software – 30.5% of the respondent replied that they use either manual processes or spreadsheets, while

69.5% indicated that they use various off the shelf software.

− BIM Software – 47.9% of the respondents stated that they do not use BIM while 52.1% replied that they use BIM, employing a large

variety of BIM software products.

− Collecting Data on the Jobsite – 82.9% of the survey respondents reported that they collect project data either manually or by

use of spreadsheets; 41.8% reported that they use software, mobile products or custom solutions; 9.4% replied that they do not

collect site data. 4.0% indicated they used other methods (not specified).

23

The Navigant Construction Forum™ believes that this survey provides a more representative picture of how the U.S. construction

industry, at least, is progressing with respect to the adoption of new technology. Some of the more relevant findings of this survey are

set forth below.

Technologies Experimented With

TECHNOLOGIES PERCENTAGE

Drones 20.7%

3D Scanners 10.2%

3D Printers 5.1%

Virtual Reality 4.9%

Augmented Reality 4.2%

Wearable Devices 3.6%

Other 2.9%

None 70.3%

This survey paints the following picture concerning the adoption

of technology in the U.S. construction industry.

• Field data collection and project management solutions are

the most likely to have full mobile capabilities, while project

scheduling is the least likely.

• With nearly 50% of constructors not using BIM, it is hard to

see where the next generation of 4D, 5D and 6D solutions will

fall into place in the industry.

• Only 26.8% of construction professionals are using a field

data collection solution, even less than those using BIM.

• Most constructors are still sorting through all of the software

they use today that does not integrate, and are not yet

thinking of robotics and other advances.

This survey concludes with the following remarks concerning the

industry’s slow adoption of new technologies.

“The construction industry continues to underspend on

technology compared to other industries. … The lack of research

and development among the construction companies surveyed

highlights the industry’s reactive approach to technology. With

minimal budget and allocated staff, companies don’t have much

bandwidth for tinkering with potential technology solutions.

As a result, the construction industry is notoriously behind on

implementing innovative solutions.”

CONCLUSION

The Forum and other industry observers have long noted

the low level of productivity in the construction industry; the

declining number of qualified craft workers available; the lack

of open communications between project participants; and the

increasing number of claims centering on productivity loss and

project delays.

The leading factors in the slow uptake of technology advances

seem to be twofold. First is the general resistance to change

common within the industry at large. However, as technology

develops and rolls out; as contractors and construction

managers continue to hire younger staff who are more

familiar with technology; as the younger staff begins to rise

in their organizations to project managers and above; and, as

competitors begin to make use of technology, it is likely that

this resistance will fall away. The second factor appears to

be the cost of the new technology. Anyone familiar with the

construction industry knows full well that this industry has

extremely low margins despite working in a very risky business.

But as technology advances become more common in the

industry, the cost of these technological advances should come

down. To quote Bill Gates on the cost factor – “If GM had kept up

with the technology like the computer industry has, we would all

be driving $25.00 cars that got 1,000 miles to the gallon.” While

the Navigant Construction Forum™ is confident that the cost

of new technology will never drop to this level, it is likely that

as more companies use new technology, the less it will cost for

each company.

24

The Navigant Construction Forum™ is encouraged by the

advances in construction industry technology today as well

as those under active development. These technological

developments seem to be oriented toward and, once employed

on project sites, are likely to result in the following improvements:

• Increased open communication between owners, designers,

construction managers, and contractors at all levels of project

organizations

• Making accurate information available and easily accessible to

all project participants on a real time basis

• Improved productivity on project sites

• Reduced project delays and related claims

NAVIGANT CONSTRUCTION FORUM™

Navigant (NYSE: NCI) established the Navigant Construction

Forum™ in September 2010. The mission of the Navigant

Construction Forum™ is to be the industry’s resource for thought

leadership and best practices on avoidance and resolution

of construction project disputes globally. Building on lessons

learned in global construction dispute avoidance and resolution,

the Navigant Construction Forum™ issues papers and research

perspectives; publishes a quarterly e-journal (Insight from

Hindsight); makes presentations globally; and offers in house

seminars on the most critical issues related to avoidance,

mitigation, and resolution of construction disputes.

Navigant is a specialized, global expert services firm dedicated

to assisting clients in creating and protecting value in the face

of critical business risks and opportunities. Through senior

level engagement with clients, Navigant professionals combine

technical expertise in Disputes and Investigations, Economics,

Financial Advisory, and Management Consulting, with business

pragmatism in the highly regulated Construction, Energy,

Financial Services and Healthcare industries to support clients in

addressing their most critical business needs.

Navigant’s Global Construction Practice is the leading provider

of expert services in the construction and engineering industries.

Navigant’s senior professionals have testified in U.S. federal and

state courts, more than a dozen international arbitration forums,

including the AAA, DIAC, ICC, SIAC, ICISD, CENAPI, LCIA, and

PCA, as well as ad hoc tribunals operating under UNCITRAL

rules. Through lessons learned from Navigant’s forensic cost/

quantum and programme/schedule analysis on more than

5,000 projects located in 95 countries around the world,

Navigant’s construction experts work with owners, contractors,

design professionals, providers of capital, and legal counsel to

proactively manage large capital investments through advisory

services, and manage the risks associated with the resolution of

claims or disputes on those projects, with an emphasis on the

infrastructure, healthcare, and energy industries.

FUTURE EFFORTS OF THE NAVIGANT CONSTRUCTION FORUM™

Author’s Note: This report is my last research perspective.

Since December 2010, the Navigant Construction Forum™ has

published 22 research perspectives. However, I am retiring

from Navigant Consulting in early January 2017. Although I will

continue to act as a consultant to Navigant on a very limited

basis, I will no longer be the executive director of the Navigant

Construction Forum™. I have thoroughly enjoyed my role as

executive director of the Forum. I sincerely hope that the efforts

of the Forum over the past six years have provided value to the

construction industry, an industry that has been and remains so

vital to humanity globally.

In the first quarter of 2017, the Navigant Construction Forum™

will issue another research perspective analyzing construction

industry issues. Further research will continue to be performed

and published by the Navigant Construction Forum™ as we move

forward. If any readers of this research perspective have ideas

on further construction dispute-related research that would be

helpful to the industry, you are invited to e-mail suggestions to

Steve Pitaniello at spitaniello@navigant.com.

25

APPENDIX A

26

APPENDIX A – LIST OF ACRONYMS

ADM: Arrow Diagraming Method

AMF: Additive Manufacturing File

AMG: Automatic Machine Guidance

AR: Augmented Reality

ASME: American Society of Mechanical Engineers

BIM: Building Information Modeling

CAD : Computer-Aided Drawings

CCD: Charge-Coupled Device

CFMA: Construction Financial Management Association

CPM: Critical Path Method

CPS : Cyber-Physical System

FCC: Federal Aviation Administration

GIS: Geographic Information System

GNSS: Global Navigation Satellite System

GPR: Ground Penetrating Radar

GPS: Global Positioning System

IOT: Internet of Things

ISO: International Organization for Standardization

LED: Light-Emitting Diode

LIDAR: Light Detection and Ranging

NFC: Near Field Communication

OGC: Open Geospatial Consortium

OSHA: Occupational Safety and Health Administration

27

RFC: Request for Clarification

RFI: Request for Information

RFID: Radio Frequency Identification

RIDS: Railroad Intrusion Detection System

RS: Remote Sensing

RTLS: Real Time Location System

RTK: Real Time Kinematic Technology

SaaS: Software as a Service

UAS: Unmanned Aircraft Systems

UAV: Unmanned Aerial Vehicle

VDC : Virtual Design and Construction

APPENDIX A – LIST OF ACRONYMS

©2016 Navigant Consulting, Inc. All rights reserved. 00006470

Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services.

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CONTACTS

JAMES G. ZACK, JR.CCM, CFCC, FAACE, FFA, FRICS, PMP Executive DirectorNavigant Construction Forum™

Boulder, Colorado

navigant.com

About Navigant

Navigant Consulting, Inc. (NYSE: NCI) is a specialized, global professional services

firm that helps clients take control of their future. Navigant’s professionals apply deep

industry knowledge, substantive technical expertise, and an enterprising approach

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or legal pressures, the Firm primarily serves clients in the healthcare, energy and

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found at navigant.com.